Suppose that Home has 20% of the world's capital, 10% of
The world's skilled labor, and 30% of the world's unskilled
Labor and produces 20% of the world's GDP.What does this
Information suggest?
A)only that Home is capital abundant
B)only that Home is skilledlabor abundant
C)only that Home is abundant in unskilled labor
D)Home is not abundant in capital, skilled labor, or unskilled labor.

Question

Suppose that Home has 20% of the world's capital, 10% of
The world's skilled labor, and 30% of the world's unskilled
Labor and produces 20% of the world's GDP.What does this
Information suggest?
A)only that Home is capital abundant
B)only that Home is skilled­labor abundant
C)only that Home is abundant in unskilled labor
D)Home is not abundant in capital, skilled labor, or unskilled labor.

Quizplus · Accepted Answer

Home has a higher percentage of the world's unskilled labor (30%) compared to its share of capital (20%) and skilled labor (10%), suggesting it is abundant in unskilled labor.

Suppose That Home Has 20% of the World's Capital, 10